Benefits of Including Spouse in Term Insurance Plan

2025-05-20

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How will a Term Life Insurance Plan Benefit

Insurance is one of the most important investments made by most people. Having insurance coverage helps people ensure that their dependents are well looked after, even if they are themselves no longer around. Term plans are among the most popular insurance policies, as they provide simple payouts in accordance with the sum assured agreed upon at the time the policy is purchased.

Many term plans also offer the advantage of adding a spouse to the plan. When spouses are both policyholders, these policies are referred to as joint term plans. Most insurers offer policyholders the option of jointly getting a term plan with their spouses. The plan offers flexible premium payment options and versatile payout choices, whether as a lump sum, monthly income, or a mix of both, tailored to meet the evolving financial needs of both spouses. The iSelect Smart360 Term Plan, offered by Canara HSBC Life Insurance, even offers discounts on premium rates when a spouse is included on the policyholder’s term plan.

Read on to learn about the other benefits associated with opting for a joint term insurance plan, rather than two separate term plans for a couple.

Key Takeaways

Joint term plans provide coverage to both spouses under a single policy.
Easier documentation and paperwork compared to separate policies.
Cheaper premiums compared to two separate term plans.
Offers waiver of premium benefit after the death of one spouse.
Tax benefits can be claimed under Section 80C and 10(10D).

What Are the Key Benefits of Choosing a Joint Term Plan?

Choosing the right life insurance plan is crucial to ensure your family’s financial security. Joint term plans have become increasingly popular among couples due to the wide range of benefits they offer under a single policy. From higher sum assured amounts to easier management and lower premiums, joint term plans provide practical solutions for couples looking to secure their future together. Below are some of the key benefits of opting for a joint term insurance plan.

Increased Sum Assured

With a joint term plan for spouses, beneficiaries such as children will earn a higher sum assured. Ensure that you have opted for a term plan which makes payout for both spouses and not just one. This way, even if one spouse dies and their sum assured is paid; the beneficiaries will also receive the sum assured in case of the death of other spouse as well.

Increased Convenience

One of the things most people dread while buying an insurance policy or making any kind of investment is the paperwork that goes towards it. However, with a joint term plan, paperwork completion is much more convenient and there is hardly any hassle with documentation. The joint term plan can be brought about with minimal paperwork and maximum convenience. If you opt for the iSelect Smart360 Term Plan, offered by Canara HSBC Life Insurance, you can access the term plan with minimal documentation.

Along with offering a range of benefits including flexibility in payment of premium and payment of the sum assured upon the policyholder’s death, the term plan also lets policyholders buy the policy with minimal documentation and maximum convenience. Additionally, if you opt for a joint term plan, the terms and conditions remain the same for both policyholders meaning you only need to study the policy’s fine print once, as opposed to having two different term plans with differing terms, conditions and fine print in the policy document.

Cheaper Premiums

Term plans are considered to be among the cheapest forms of life insurance. However, buying separate term plans for each spouse usually costs more than opting for a single joint term plan covering both. As a couple, it will always be more economically viable to pay for a single joint term plan that offers coverage to both individuals rather than pay for two separate term plans.

Waiver of Premium

One key advantage of joint term plans is the waiver of the premium benefit. If one spouse passes away, the surviving spouse is no longer required to pay the remaining premiums, yet the policy continues to provide full coverage. This ensures that the surviving spouse and their dependents can still claim the full sum assured when the second policyholder passes away.

Tax Benefits

Joint term insurance plans also assist you in saving taxes under Section 80C of the Income Tax Act. You can claim a deduction for the paid premiums on the policy, which reduces the tax liability of the policyholder. The paid amount to the beneficiaries is also tax-exempt under Section 10(10D), and the family is given financial security without any tax issues.

Financial Security for Children

A joint term plan provides dependents or children with financial security for several years. If both the spouses die, beneficiaries are paid for each insured person. This secures children's education, daily spending, and lifestyle so that they are not affected. Any financial help gives relief to policyholders that their family will be safe even after they are no longer around.

Smart Options to Secure Both Partners

The plan offers a host of benefits that can prove advantageous to both spouses, such as:

Multiple options for premium payment, giving flexibility in how you pay for the policy.
Different ways to receive the sum assured, depending on what suits your family’s needs:
- As a lump sum amount paid all at once.
- As a monthly income for regular household expenses.
- As a combination, with half received as a lump sum and the other half as monthly income.
You can also choose how the monthly income is received:
- As a fixed amount every month.
- As an increasing income, where the monthly payout increases over time.

Final Thoughts

While individual plans have their merits, a joint term plan offers combined protection, reduced premiums, and simplified policy management. It’s an ideal choice for couples looking for comprehensive and cost-effective life insurance.

However, with numerous options available, it is difficult to choose which one would be more suitable for your financial condition. You need to consider your insurance requirements, financial objectives, and what your dependents require before making a policy selection. Compare the benefits, features, and conditions provided by various insurers and select the one that provides the maximum security and convenience of use for your family.

If flexibility and convenience are your priorities, consider the iSelect Smart360 Term Plan by Canara HSBC Life Insurance. The plan provides joint cover with various payout options, reduced paperwork, and low premiums. A prudent decision today will pave the way for a worry-free and secure future for your loved ones tomorrow.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.